<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q


(Mark One)

/XX/   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
       EXCHANGE ACT OF 1934

For the quarterly period ended     June 30, 1999
                               ----------------------

                                       OR

/   /  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
       EXCHANGE ACT OF 1934

For the transition period from                    to
                               ------------------   ---------------------------



For Quarter Ended June 30, 1999                    Commission File No.  0-25648


                             AFG Investment Trust D
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

Delaware                                                    04-3157233
----------------------------------------        --------------------------------
(State or other jurisdiction of                            (IRS Employer
 incorporation or organization)                           Identification No.)

88 Broad Street, Boston, MA                                   02110
----------------------------------------        --------------------------------
(Address of principal executive offices)                    (Zip Code)

Registrant's telephone number, including area code        (617) 854-5800
                                                     --------------------------
-------------------------------------------------------------------------------

(Former name, former address and former fiscal year, if changed since last
report.)

     Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes   X      No
                                              -----     ------
                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS

     Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13, or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been subject
to such filing requirements for the past 90 days. Yes      No
                                                     -----   ------

<PAGE>




                             AFG Investment Trust D

                                    FORM 10-Q

                                      INDEX



<TABLE>
<CAPTION>

                                                                                                        Page
                                                                                                        ----
<S>                                                                                                  <C>
PART I.  FINANCIAL INFORMATION:

    Item 1.   Financial Statements

      Statement of Financial Position
        at June 30, 1999 and December 31, 1998                                                             3

      Statement of Operations
        for the three and six months ended June 30, 1999 and 1998                                          4

      Statement of Changes in Participants' Capital
        for the six months ended June 30, 1999                                                             5

      Statement of Cash Flows
        for the six months ended June 30, 1999 and 1998                                                    6

      Notes to the Financial Statements                                                                 7-11


    Item 2.   Management's Discussion and Analysis of Financial
              Condition and Results of Operations                                                      12-16


PART II.  OTHER INFORMATION:

    Items 1 - 6                                                                                           17
</TABLE>





                                       2
<PAGE>


                            AFG Investment Trust D

                       STATEMENT OF FINANCIAL POSITION
                      June 30, 1999 and December 31, 1998

                                 (Unaudited)
<TABLE>
<CAPTION>
                                                                                      June 30,           December 31,
                                                                                        1999                 1998
                                                                                 -----------------   -----------------
<S>                                                                              <C>                 <C>
ASSETS

Cash and cash equivalents                                                        $      11,316,278   $       9,100,016
Restricted cash                                                                          1,572,405           5,110,315
Marketable securities                                                                      141,231                  --
Rents receivable                                                                         2,044,939           2,322,608
Accounts receivable - affiliate                                                            701,143             448,039
Loan receivable - Kettle Valley                                                             49,396                  --
Investment - affiliate                                                                     681,501             699,626
Investment in Kettle Valley                                                              4,365,372                  --
Investment in Kirkwood                                                                   1,818,000                  --
Equipment at cost, net of accumulated depreciation
   of $40,893,591 and $45,307,297 at June 30, 1999
   and December 31, 1998, respectively                                                  55,687,867          60,837,372
                                                                                 -----------------   -----------------
         Total assets                                                            $      78,378,132   $      78,517,976
                                                                                 -----------------   -----------------
                                                                                 -----------------   -----------------
LIABILITIES AND PARTICIPANTS' CAPITAL

Notes payable                                                                    $      33,480,685   $      35,030,985
Accrued interest                                                                           392,474             332,001
Accrued liabilities                                                                        300,725             321,500
Accrued liabilities - affiliates                                                           497,493              69,248
Deferred rental income                                                                     101,803             408,652
Other liabilities                                                                        1,488,403                  --
Cash distributions payable to participants                                               1,905,824             417,939
                                                                                 -----------------   -----------------

         Total liabilities                                                              38,167,407          36,580,325
                                                                                 -----------------   -----------------

Participants' capital (deficit):
   Managing Trustee                                                                         10,504              12,140
   Special Beneficiary                                                                      86,659             100,157
   Class A Beneficiary Interests (1,934,755 Interests;
     initial purchase price of $25 each)                                                33,586,989          35,230,782
   Class B Beneficiary Interests (3,142,083 Interests;
     initial purchase price of $5 each)                                                  8,141,895           8,209,894
   Treasury Interests (154,275 Class A Interests at Cost)                               (1,615,322)         (1,615,322)
                                                                                 -----------------   -----------------

         Total participants' capital                                                    40,210,725          41,937,651
                                                                                 -----------------   -----------------
         Total liabilities and participants' capital                             $      78,378,132   $      78,517,976
                                                                                 -----------------   -----------------
                                                                                 -----------------   -----------------
</TABLE>





                                       3
<PAGE>


                            AFG Investment Trust D

                            STATEMENT OF OPERATIONS
            for the three and six months ended June 30, 1999 and 1998

                                 (Unaudited)
<TABLE>
<CAPTION>
                                                                 Three Months                           Six Months
                                                                Ended June 30,                        Ended June 30,
                                                           1999               1998                1999               1998
                                                      --------------     --------------      --------------     --------------
<S>                                                   <C>                <C>                 <C>                <C>
Income:
    Lease revenue                                     $     3,835,109    $     4,601,808     $     7,730,464    $     9,579,590

    Interest income                                           169,340            222,143             321,779            440,123

    Gain (loss) on sale of equipment                           74,571            (78,113)            168,288           (119,503)

    Other income                                                   --                 --             261,116                 --
                                                      ---------------    ---------------     ---------------    ---------------

         Total income                                       4,079,020          4,745,838           8,481,647          9,900,210
                                                      ---------------    ---------------     ---------------    ---------------


Expenses:

    Depreciation and amortization                           1,936,288          2,681,811           4,140,547          5,969,318

    Interest expense                                          692,381            897,884           1,391,177          1,830,304

    Equipment management fees
      - affiliate                                             199,172            217,248             395,104            451,800

    Operating expenses - affiliate                            209,460            206,812             298,930            300,811
                                                      ---------------    ---------------     ---------------    ---------------

         Total expenses                                     3,037,301          4,003,755           6,225,758          8,552,233
                                                      ---------------    ---------------     ---------------    ---------------

Net income                                            $     1,041,719    $       742,083     $     2,255,889    $     1,347,977
                                                      ---------------    ---------------     ---------------    ---------------
                                                      ---------------    ---------------     ---------------    ---------------
Net income
   per Class A Beneficiary Interest                   $         0.33     $         0.19      $         0.73     $         0.19
                                                      --------------     --------------      --------------     --------------
                                                      --------------     --------------      --------------     --------------
   per Class B Beneficiary Interest                   $         0.09     $         0.08      $         0.20     $         0.08
                                                      --------------     --------------      --------------     --------------
                                                      --------------     --------------      --------------     --------------
Cash distributions declared

   per Class A Beneficiary Interest                   $         1.18     $         0.41      $         1.59     $         0.82
                                                      --------------     --------------      --------------     --------------
                                                      --------------     --------------      --------------     --------------
   per Class B Beneficiary Interest                   $         0.11     $         0.16      $         0.22     $         0.33
                                                      --------------     --------------      --------------     --------------
                                                      --------------     --------------      --------------     --------------

</TABLE>

                     The accompanying notes are an integral
                       part of these financial statements.



                                       4
<PAGE>


                              AFG Investment Trust D

                     STATEMENT OF CHANGES IN PARTICIPANTS' CAPITAL
                          for the six months ended June 30, 1999

                                    (Unaudited)

<TABLE>
<CAPTION>

                                              Managing          Special
                                               Trustee        Beneficiary           Class A Beneficiaries
                                               Amount           Amount          Interests          Amount
                                           --------------   --------------   --------------    ---------------

<S>                                      <C>              <C>                   <C>          <C>
Balance at December 31, 1998               $      12,140    $      100,157        1,934,755    $    35,230,782

     Net income                                   23,313           192,334               --          1,420,632

     Unrealized gain on marketable
        securities                                   127             1,048               --              8,026
                                           -------------    --------------   --------------    ---------------

Comprehensive income                              23,440           193,382               --          1,428,658
                                           -------------    --------------   --------------    ---------------

Cash distributions declared                      (25,076)         (206,880)              --         (3,072,451)
                                           -------------    --------------   --------------    ---------------

Balance at June 30, 1999                   $      10,504    $       86,659        1,934,755    $    33,586,989
                                           -------------    --------------   --------------    ---------------
                                           -------------    --------------   --------------    ---------------
</TABLE>


<TABLE>

<CAPTION>


                                                 Class B Beneficiaries          Treasury
                                             Interests         Amount           Interests           Total
                                          --------------   ---------------   --------------    ----------

<S>                                       <C>           <C>               <C>               <C>
Balance at December 31, 1998                   3,142,083   $     8,209,894   $   (1,615,322)   $    41,937,651

     Net income                                       --           619,610               --          2,255,889

     Unrealized gain on marketable
        securities                                    --             3,501               --             12,702
                                          --------------   ---------------   --------------    ---------------

Comprehensive income                                  --           623,111               --          2,268,591
                                          --------------   ---------------   --------------    ---------------

Cash distributions declared                           --          (691,110)              --         (3,995,517)
                                          --------------   ---------------   --------------    ---------------

Balance at June 30, 1999                       3,142,083   $     8,141,895   $   (1,615,322)   $    40,210,725
                                          --------------   ---------------   --------------    ---------------
                                          --------------   ---------------   --------------    ---------------

</TABLE>

                     The accompanying notes are an integral
                       part of these financial statements.


                                       5
<PAGE>

                              AFG Investment Trust D

                             STATEMENT OF CASH FLOWS
                   for the six months ended June 30, 1999 and 1998

                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                                             1999                  1998
                                                                                        ---------------    ----------------
<S>                                                                             <C>                      <C>
Cash flows from (used in) operating activities:
Net income                                                                           $     2,255,889       $     1,347,977

Adjustments to reconcile net income to net cash from operating activities:
         Depreciation and amortization                                                     4,140,547             5,969,318
         (Gain) loss on sale of equipment                                                   (168,288)              119,503

Changes in assets and liabilities
    Decrease (increase) in:
         Cash held in escrow                                                                      --               (37,601)
         Rents receivable                                                                    277,669              (639,956)
         Accounts receivable - affiliate                                                    (253,104)              (79,046)
         Loan receivable - Kettle Valley                                                     (49,396)                   --
    Increase (decrease) in:
         Accrued interest                                                                     60,473               269,320
         Accrued liabilities                                                                 (20,775)              125,439
         Accrued liabilities - affiliates                                                    428,245              (101,713)
         Deferred rental income                                                             (306,849)              115,735
                                                                                     ---------------       ---------------

            Net cash from operating activities                                             6,364,411             7,088,976
                                                                                     ---------------       ---------------

Cash flows from (used in) investing activities:
    Purchase of marketable securities                                                       (128,529)                   --
    Investment - affiliate                                                                    18,125                    --
    Investment in Kettle Valley                                                           (3,064,700)                   --
    Investment in Kirkwood                                                                (1,818,000)                   --
    Purchase of equipment                                                                         --               (87,748)
    Proceeds from equipment sales                                                          1,177,246                75,440
    Other liabilities                                                                      1,488,403                    --
                                                                                     ---------------       ---------------

            Net cash used in investing activities                                         (2,327,455)              (12,308)
                                                                                     ---------------       ---------------

Cash flows from (used in) financing activities:
    Principal payments - notes payable                                                    (2,850,972)           (3,801,069)
    Distributions paid                                                                    (2,507,632)           (2,882,630)
    Restricted cash                                                                        3,537,910                    --
                                                                                     ---------------       ---------------

            Net cash used in financing activities                                         (1,820,694)           (6,683,699)
                                                                                     ---------------       ---------------

Net increase in cash and cash equivalents                                                  2,216,262               392,969

Cash and cash equivalents at beginning of period                                           9,100,016             4,218,502
                                                                                     ---------------       ---------------

Cash and cash equivalents at end of period                                           $    11,316,278       $     4,611,471
                                                                                     ---------------       ---------------
                                                                                     ---------------       ---------------
Supplemental disclosure of cash flow information:

    Cash paid during the period for interest                                         $     1,330,704       $     1,560,984
                                                                                     ---------------       ---------------
                                                                                     ---------------       ---------------
Supplemental disclosure of non-cash activity:
    See Note 4 to the financial statements.

</TABLE>

                     The accompanying notes are an integral
                       part of these financial statements.

                                       6
<PAGE>


                             AFG Investment Trust D
                        Notes to the Financial Statements
                                  June 30, 1999

                                   (Unaudited)



NOTE 1 - BASIS OF PRESENTATION

     The financial statements presented herein are prepared in conformity with
generally accepted accounting principles and the instructions for preparing Form
10-Q under Rule 10-01 of Regulation S-X of the Securities and Exchange
Commission and are unaudited. As such, these financial statements do not include
all information and footnote disclosures required under generally accepted
accounting principles for complete financial statements and, accordingly, the
accompanying financial statements should be read in conjunction with the
footnotes presented in the 1998 Annual Report. Except as disclosed herein, there
has been no material change to the information presented in the footnotes to the
1998 Annual Report.

     In the opinion of management, all adjustments (consisting of normal and
recurring adjustments) considered necessary to present fairly the financial
position at June 30, 1999 and December 31, 1998 and results of operations for
the three and six months ended June 30, 1999 and 1998 have been made and are
reflected.


NOTE 2 - CASH EQUIVALENTS AND MARKETABLE SECURITIES

     The Trust considers all highly liquid investments with an original maturity
of three months or less to be cash equivalents. Marketable securities consist of
equity securities which are classified as available-for-sale. Available-for-sale
securities are carried at fair value, with unrealized gains and losses reported
as a separate component of participants' capital. The Trust recorded an
unrealized gain on available-for-sale securities of $12,702 during the six
months ended June 30, 1999 that is included as a separate component of
participants' capital.

     At June 30, 1999, the Trust had $1,572,405 which is classified as
Restricted Cash and represents funds designated to pay a special cash
distribution to Class A Beneficiaries in conjunction with the settlement of the
Class Action Lawsuit referred to in Notes 9 and 10.

NOTE 3 - REVENUE RECOGNITION

     Rents are payable to the Trust monthly, quarterly or semi-annually and no
significant amounts are calculated on factors other than the passage of time.
The leases are accounted for as operating leases and are noncancellable. Rents
received prior to their due dates are deferred. In certain instances, the Trust
may enter primary-term, renewal or re-lease agreements which expire beyond the
Trust's anticipated dissolution date. This circumstance is not expected to
prevent the orderly wind-up of the Trust's business activities as the Managing
Trustee and the Advisor would seek to sell the then-remaining equipment assets
either to the lessee or to a third party, taking into consideration the amount
of future noncancellable rental payments associated with the attendant lease
agreements. Future minimum rents of $19,157,819 are due as follows:

<TABLE>

<S>                                               <C>
         For the year ending June 30,  2000         $      11,344,303
                                       2001                 4,776,502
                                       2002                 2,556,748
                                       2003                   480,266
                                                   ------------------

                                       Total        $      19,157,819
                                                    ------------------
                                                    ------------------
</TABLE>

NOTE 4 - INVESTMENT IN KETTLE VALLEY

     On March 1, 1999, the Trust and an affiliated trust (collectively, the
"Buyers") formed EFG/Kettle Development LLC, a Delaware limited liability
company, for the purpose of acquiring a 49.9% indirect ownership interest (the

                                       7
<PAGE>
                             AFG Investment Trust D
                        Notes to the Financial Statements

                                   (Continued)

"Interest") in a real estate development in Kelowna, British Columbia called
Kettle Valley. EFG/Kettle Development LLC, upon receiving the Buyers' equity
investment, purchased the Interest from a special purpose company ("SPC") whose
subsidiaries own a 99.9% limited partnership interest in Kettle Valley
Development Limited Partnership ("KVD LP"). The SPC and its subsidiaries were
established by the seller, in part, for income tax purposes and have no business
interests other than the development of Kettle Valley. KVD LP is a Canadian
Partnership that owns the property, consisting of approximately 280 acres of
land. The project, which is in the early stages of being marketed to home
buyers, is zoned for 1,000 residential units in addition to commercial space
that, currently, is being constructed. The seller is an unaffiliated third-party
company and has retained the remaining 50.1% ownership interest in the SPC. A
newly organized Canadian affiliate of EFG replaced the original general partner
of KVD LP on March 1, 1999.

     The Trust's ownership share in EFG/Kettle Development LLC is 49.396% and
had a cost of $4,322,150, which was funded with cash of $3,021,478 and a
non-recourse note for $1,300,672. The note bears interest at an annualized rate
of 7.5% and will be fully amortized over 34 months commencing April 1, 1999. The
note is secured only by the Trust's stock interests in the SPC. In addition, the
seller purchased a residual sharing interest in a Boeing 767-300 owned by the
Buyers and leased to Scandinavian Airlines System ("SAS"). The seller paid
$3,013,206 to the Buyers ($1,488,403, or 49.396% to the Trust) for the residual
interest, which is subordinate to certain preferred payments to be made to the
Buyers in connection with the aircraft. Payment of the residual interest is due
only to the extent that the Trust receives net residual proceeds from the
aircraft. The residual interest is non-recourse to the Buyers and is reflected
as Other Liabilities on the accompanying Statement of Financial Position at June
30, 1999. Investment in Kettle Valley at June 30, 1999 represents the actual
cost paid by the Trust plus a 1% acquisition fee.


NOTE 5 - INVESTMENT IN KIRKWOOD

     On May 1, 1999, the Trust and three affiliated trusts (collectively the
"Trusts") and another affiliate formed EFG/Kirkwood Capital LLC ("EFG/Kirkwood")
for the purpose of acquiring preferred and common stock interests in Kirkwood
Associates Inc. ("KAI"). The Trusts purchased Class A Interests in EFG/Kirkwood
and the other affiliate purchased Class B Interests in EFG/Kirkwood. Generally,
the Class A Interest holders are entitled to certain preferred returns prior to
distribution payments to the Class B Interest holders. KAI owns a ski resort, a
local public utility, and significant land which is held for development. The
resort is located in Kirkwood, California and is approximately 30 miles from
South Lake Tahoe, Nevada. The Trust's ownership interest in EFG/Kirkwood had a
cost of $1,818,000, including a 1% acquisition fee ($18,000) paid to EFG. At
June 30, 1999, the Trust owed $300,000 to an affiliate related to this
transaction which is included in Accrued Liabilities - Affiliates on the
accompanying Statement of Financial Position at June 30, 1999. This amount was
paid in July 1999.


NOTE 6 - EQUIPMENT

     The following is a summary of equipment owned by the Trust at June 30,
1999. Remaining Lease Term (Months), as used below, represents the number of
months remaining from June 30, 1999 under contracted lease terms and is
presented as a range when more than one lease agreement is contained in the
stated equipment category. A Remaining Lease Term equal to zero reflects
equipment either held for sale or re-lease or being leased on a month-to-month
basis. In the opinion of EFG, the acquisition cost of the equipment did not
exceed its fair market value.



                                       8
<PAGE>
                             AFG Investment Trust D
                        Notes to the Financial Statements

                                   (Continued)

<TABLE>
<CAPTION>
                                                               Remaining
                                                              Lease Term                       Equipment
         Equipment Type                                        (Months)                         At Cost
-----------------------------------                          -------------                  --------------
<S>                                                                <C>                      <C>
Aircraft                                                           4-42                     $   52,946,296
Vessels                                                              39                         13,875,360
Locomotives                                                          12                         10,684,643
Construction and mining                                            0-36                          5,031,009
Materials handling                                                 0-47                          4,605,027
Manufacturing                                                       0-6                          3,849,469
Miscellaneous                                                      0-17                          3,564,568
Computers and peripherals                                          0-13                            890,301
Tractors & heavy duty trucks                                          0                            545,117
Research & test                                                     0-9                            501,012
Motor vehicles                                                        0                             38,499
Photocopying                                                          0                             31,913
Retail store fixtures                                                 6                             11,712
Communications                                                        0                              6,532
                                                                                            --------------
                                                   Total equipment cost                         96,581,458

                                               Accumulated depreciation                        (40,893,591)
                                                                                            --------------
                               Equipment, net of accumulated depreciation                   $   55,687,867
                                                                                            --------------
                                                                                            --------------

</TABLE>

     The Trust's equipment portfolio includes certain assets in which the Trust
holds a proportionate ownership interest. In such cases, the remaining interests
are owned by EFG or an affiliated equipment leasing program sponsored by EFG.
The Trust and each affiliate individually report, in proportion to their
respective ownership interests, their respective shares of assets, liabilities,
revenues, and expenses associated with the equipment. At June 30, 1999, the
Trust's equipment portfolio included equipment having a proportionate original
cost of $43,058,987, representing approximately 45% of total equipment cost.

     At June 30, 1999, the cost and net book value of equipment held for sale or
re-lease was approximately $387,000 and $19,000, respectively. The Managing
Trustee is actively seeking the sale or re-lease of all equipment not on lease.


NOTE 7 - RELATED PARTY TRANSACTIONS

     All operating expenses incurred by the Trust are paid by EFG on behalf of
the Trust and EFG is reimbursed at its actual cost for such expenditures. Fees
and other costs incurred during the six month periods ended June 30, 1999 and
1998, which were paid or accrued by the Trust to EFG or its Affiliates, are as
follows:
<TABLE>
<CAPTION>

                                                              1999                 1998
                                                        ---------------      ---------------
<S>                                                     <C>                  <C>
     Equipment acquisition fees                         $        19,285      $         2,556
     Equipment management fees                                  395,104              451,800
     Administrative charges                                      97,066               40,092
     Reimbursable operating expenses
         due to third parties                                   201,864              260,719
                                                        ---------------      ---------------

                                     Total              $       713,319      $       755,167
                                                        ---------------      ---------------
                                                        ---------------      ---------------

</TABLE>

     All rents and proceeds from the sale of equipment are paid directly to
either EFG or to a lender. EFG temporarily deposits collected funds in a
separate interest-bearing escrow account prior to remittance to the Trust.


                                       9
<PAGE>
                             AFG Investment Trust D
                        Notes to the Financial Statements

                                  (Continued)

At June 30, 1999, the Trust was owed $701,143 by EFG for such funds and the
interest thereon. These funds were remitted to the Trust in July 1999.

     Administrative charges represent amounts owed to EFG, pursuant to
Section 10.4(c) of the Trust Agreement, for persons employed by EFG who are
engaged in providing administrative services to the Trust. Administrative
charges and reimburseable operating expenses for the six months ended June
30, 1999 include adjustments for 1998 actual costs of approximately $38,000
and $28,000, respectively.

NOTE 8 - NOTES PAYABLE

     Notes payable at June 30, 1999 consisted of installment notes of
$33,480,685 payable to banks and institutional lenders. The notes bear interest
rates ranging between 6.92% and 13.75%, except for one note which bears a
fluctuating interest rate based on LIBOR (4.99% at June 30, 1999) plus a margin.
All of the installment notes are non-recourse and are collateralized by the
equipment and assignment of the related lease payments, except for one note
which is collateralized by certain stock interests (see Note 4). Generally, the
installment notes will be fully amortized by noncancellable rents. However, the
Trust has balloon payment obligations of $19,980,682, $1,400,074 and $282,421 at
the expiration of the lease terms related to an aircraft leased to SAS, certain
rail equipment and its interest in an aircraft leased to Reno Air, Inc.,
respectively. The carrying amount of notes payable approximates fair value at
June 30, 1999.

    The annual maturities of notes payable are as follows:
<TABLE>

<S>                                 <C>                   <C>
      For the year ending June 30,     2000                  $    6,342,770
                                       2001                      24,430,355
                                       2002                       2,071,822
                                       2003                         635,738
                                                             --------------

                                      Total                  $   33,480,685
                                                             --------------
                                                             --------------

</TABLE>


NOTE 9 - LEGAL PROCEEDINGS

     On or about January 15, 1998, certain plaintiffs (the "Plaintiffs") filed a
class and derivative action, captioned LEONARD ROSENBLUM, ET AL. V. EQUIS
FINANCIAL GROUP LIMITED PARTNERSHIP, ET AL., in the United States District Court
for the Southern District of Florida (the "Court") on behalf of a proposed class
of investors in 28 equipment leasing programs sponsored by EFG, including the
Trust (collectively, the "Nominal Defendants"), against EFG and a number of its
affiliates, including the Managing Trustee, as defendants (collectively, the
"Defendants"). Certain of the Plaintiffs, on or about June 24, 1997, had filed
an earlier derivative action, captioned LEONARD ROSENBLUM, ET AL. V. EQUIS
FINANCIAL GROUP LIMITED PARTNERSHIP, ET AL., in the Superior Court of the
Commonwealth of Massachusetts on behalf of the Nominal Defendants against the
Defendants. Both actions are referred to herein collectively as the "Class
Action Lawsuit." The Class Action Lawsuit was divided into two sub-classes on
March 22, 1999.

      On May 26, 1999, the Court issued its Order and Final Judgment approving
settlement of the Class Action Lawsuit with respect to claims asserted by the
Plaintiffs on behalf of the sub-class that includes the Trust. Claims involving
the second sub-class, not including the Trust, remain pending. As a result of
the settlement, the Trust declared a special cash distribution of $1,572,405,
including legal fees for Plaintiffs' counsel of $84,520, that was paid in July
1999. In addition, the parent company of the Managing Trustee, Equis II
Corporation, agreed to commit $3,537,910 of its Class B Capital Contributions
(paid in connection with its purchase of Class B Interests in July 1997) to the
Trust for the Trust's investment purposes. In the absence of this commitment,
Equis II Corporation would have been entitled to receive a Class B Capital
Distribution for this amount pursuant to the Trust Agreement, as amended. The
Trust's share of legal fees and expenses related to the Class Action Lawsuit,


                                       10
<PAGE>

                             AFG Investment Trust D
                        Notes to the Financial Statements

                                  (Continued)

including the fees for Plaintiff's counsel referenced above, is estimated to be
approximately $290,000, all of which was accrued and expensed by the Trust in
1998.


NOTE 10 - SUBSEQUENT EVENT

      In July 1999, the Trust distributed $1,572,405, including legal fees of
$84,520 paid to Plaintiffs' counsel, as a special cash distribution in
connection with the settlement of the Class Action Lawsuit described in Note 9
above.




                                       11
<PAGE>




                             AFG Investment Trust D

                                    FORM 10-Q

                          PART I. FINANCIAL INFORMATION




ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.

     AFG Investment Trust D (the "Trust") commenced operations in 1992 and,
pursuant to its Trust Agreement, the Trust is scheduled to be dissolved by
December 31, 2006. The Trust was a Nominal Defendant in a Class Action Lawsuit
that was settled, with respect to the Trust and certain affiliates, in May 1999.
See Note 9 to the accompanying financial statements.

        Certain statements in this quarterly report that are not historical fact
constitute "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 and are subject to a variety of risks
and uncertainties. There are a number of important factors that could cause
actual results to differ materially from those expressed in any forward-looking
statements made herein. These factors include, but are not limited to, the
collection of the Trust's contracted rents, the realization of residual proceeds
for the Trust's equipment, and future economic conditions.

YEAR 2000 ISSUE

     The Year 2000 Issue generally refers to the capacity of computer
programming logic to correctly identify the calendar year. Many companies
utilize computer programs or hardware with date sensitive software or embedded
chips that could interpret dates ending in "00" as the year 1900 rather than the
year 2000. In certain cases, such errors could result in system failures or
miscalculations that disrupt the operations of the affected businesses. The
Trust uses information systems provided by Equis Financial Group Limited
Partnership (formerly American Finance Group) ("EFG") and has no information
systems of its own. EFG has adopted a plan to address the Year 2000 Issue that
consists of four phases: assessment, remediation, testing, and implementation
and has elected to utilize principally internal resources to perform all phases.
EFG has completed substantially all of its Year 2000 project at an aggregate
cost of less than $50,000 and at a di minimus cost to the Trust. All costs
incurred in connection with EFG's Year 2000 project have been expensed as
incurred.

     EFG's primary information software was coded by a third party at the point
of original design to use a four digit field to identify calendar year. All of
the Trust's lease billings, cash receipts and equipment remarketing processes
are performed using this proprietary software. In addition, EFG has gathered
information about the Year 2000 readiness of significant vendors and third party
servicers and continues to monitor developments in this area. All of EFG's
peripheral computer technologies, such as its network operating system and
third-party software applications, including payroll, depreciation processing,
and electronic banking, have been evaluated for potential programming changes
and have required only minor modifications to function properly with respect to
dates in the year 2000 and thereafter. EFG understands that each of its and the
Trust's significant vendors and third-party servicers are in the process, or
have completed the process, of making their systems Year 2000 compliant.
Substantially all parties queried have indicated that their systems are Year
2000 compliant.

     Presently, EFG is not aware of any outside customer with a Year 2000 Issue
that would have a material effect on the Trust's results of operations,
liquidity, or financial position. The Trust's equipment leases were structured
as triple net leases, meaning that the lessees are responsible for, among other
things, (i) maintaining and servicing all equipment during the lease term, (ii)
ensuring that all equipment functions properly and is returned in good
condition, normal wear and tear excepted, and (iii) insuring the assets against
casualty and other events of loss. Non-compliance with lease terms on the part
of a lessee, including failure to address Year 2000 Issues could result in lost
revenues and impairment of residual values of the Trust's equipment assets under
a worst-case scenario.

     EFG believes that its Year 2000 compliance plan will be effective in
resolving all material Year 2000 risks in a timely manner and that the Year 2000
Issue will not pose significant operational problems with respect to its
computer systems or result in a system failure or disruption of its or the
Trust's business operations. However, EFG has no means of ensuring that all
customers, vendors and third-party servicers will conform ultimately to Year
2000 standards. The effect of this risk to the Trust is not determinable.


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<PAGE>

                             AFG Investment Trust D

                                    FORM 10-Q

                          PART I. FINANCIAL INFORMATION



THREE AND SIX MONTHS ENDED JUNE 30, 1999 COMPARED TO THE THREE AND SIX MONTHS
ENDED JUNE 30, 1998:

RESULTS OF OPERATIONS

     For the three and six months ended June 30, 1999, the Trust recognized
lease revenue of $3,835,109 and $7,730,464, respectively, compared to $4,601,808
and $9,579,590 for same periods in 1998. The decrease in lease revenue from 1998
to 1999 resulted principally from lease term expirations and the sale of
equipment. The level of lease revenue to be recognized by the Trust in the
future may be impacted by future reinvestment; however, the extent of such
impact cannot be determined at this time.

     The Trust's equipment portfolio includes certain assets in which the Trust
holds a proportionate ownership interest. In such cases, the remaining interests
are owned by EFG or an affiliated equipment leasing program sponsored by EFG.
Proportionate equipment ownership enables the Trust to further diversify its
equipment portfolio by participating in the ownership of selected assets,
thereby reducing the general levels of risk which could result from a
concentration in any single equipment type, industry or lessee. The Trust and
each affiliate individually report, in proportion to their respective ownership
interests, their respective shares of assets, liabilities, revenues, and
expenses associated with the equipment.

     Interest income for the three and six months ended June 30, 1999 was
$169,340 and $321,779, respectively, compared to $222,143 and $440,123 for the
same periods in 1998. Generally, interest income is generated from the temporary
investment of rental receipts and equipment sale proceeds in short-term
instruments. Interest income in 1999 and 1998 includes interest earned on
proceeds resulting from the issuance of Class B Interests. The amount of future
interest income is expected to fluctuate as a result of changing interest rates,
the collection of lease revenue, and the proceeds from equipment sales, among
other factors.

     The Trust received $261,116 in 1999 as a breakage fee from a third-party
seller in connection with a transaction for new investments that was canceled by
the seller in the first quarter of 1999. This amount is reflected as Other
Income on the accompanying Statement of Operations for the six months ended June
30, 1999.

     During the three and six months ended June 30, 1999, the Trust sold
equipment having a net book value of $667,319 and $1,008,958 to existing lessees
and third parties. These sales resulted in a net gain, for financial statement
purposes, of $74,571 and $168,288, respectively.

     During the three and six months ended June 30, 1998, the Trust sold
equipment having a net book value of $129,313 and $194,943 to existing lessees
and third parties. These sales resulted in a net loss, for financial statement
purposes, of $78,113 and $119,503, respectively.

     It cannot be determined whether future sales of equipment will result in a
net gain or a net loss to the Trust, as such transactions will be dependent upon
the condition and type of equipment being sold and its marketability at the time
of sale. In addition, the amount of gain or loss reported for financial
statement purposes is partly a function of the amount of accumulated
depreciation associated with the equipment being sold.

     The ultimate realization of residual value for any type of equipment is
dependent upon many factors, including EFG's ability to sell and re-lease
equipment. Changing market conditions, industry trends, technological advances,
and many other events can converge to enhance or detract from asset values at
any given time. EFG attempts to monitor these changes in order to identify
opportunities which may be advantageous to the Trust and which will maximize
total cash returns for each asset.

     The total economic value realized for each asset is comprised of all
primary lease term revenue generated from that asset, together with its residual
value. The latter consists of cash proceeds realized upon the asset's sale in
addition to all other cash receipts obtained from renting the asset on a
re-lease, renewal or month-to-month



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<PAGE>

                             AFG Investment Trust D

                                    FORM 10-Q

                          PART I. FINANCIAL INFORMATION


basis. The Trust classifies such residual rental payments as lease revenue.
Consequently, the amount of gain or loss reported in the financial statements is
not necessarily indicative of the total residual value the Trust achieved from
leasing the equipment.

     Depreciation and amortization expense for the three and six months ended
June 30, 1999 was $1,936,288 and $4,140,547, respectively, compared to
$2,681,811 and $5,969,318 for the same periods in 1998. For financial reporting
purposes, to the extent that an asset is held on primary lease term, the Trust
depreciates the difference between (i) the cost of the asset and (ii) the
estimated residual value of the asset on a straight-line basis over such term.
For purposes of this policy, estimated residual values represent estimates of
equipment values at the date of primary lease expiration. To the extent that an
asset is held beyond its primary lease term, the Trust continues to depreciate
the remaining net book value of the asset on a straight-line basis over the
asset's remaining economic life.

     Interest expense was $692,381 and $1,391,177 or 18.1% and 18% of lease
revenue for the three and six months ended June 30, 1999, respectively, compared
to $897,884 and $1,830,304 or 19.5% and 19.1% of lease revenue for each of the
same periods in 1998. Interest expense in future periods is expected to decline
in amount and as a percentage of lease revenue as the principal balance of notes
payable is reduced through the application of rent receipts to outstanding
indebtedness. However, to the extent that reinvestment assets are acquired using
financing, future interest expense could increase.

     Management fees were $199,172 and $395,104 for the three and six months
ended June 30, 1999, respectively, compared to $217,248 and $451,800 for the
same periods in 1998. Management fees are based on 5% of gross lease revenue
generated by operating leases and 2% of gross lease revenue generated by full
payout leases. Management fees also include a 1% management fee on non-equipment
investments, excluding cash.

     Operating expenses consist principally of administrative charges,
professional service costs, such as audit and legal fees, as well as printing,
distribution and remarketing expenses. Operating expenses were $209,460 and
$298,930 during the three and six months ended June 30, 1999 compared to
$206,812 and $300,811 during the same periods in 1998. The amount of future
operating expenses cannot be predicted with certainty; however, such expenses
are usually higher during the acquisition and liquidation phases of a trust.
Other fluctuations typically occur in relation to the volume and timing of
remarketing activities.

LIQUIDITY AND CAPITAL RESOURCES AND DISCUSSION OF CASH FLOWS

     The Trust by its nature is a limited life entity. As an equipment leasing
program, the Trust's principal operating activities derive from asset rental
transactions. Accordingly, the Trust's principal source of cash from operations
is provided by the collection of periodic rents. These cash inflows are used to
satisfy debt service obligations associated with leveraged leases, and to pay
management fees and operating costs. Operating activities generated net cash
inflows of $6,364,411 and $7,088,976 for the six months ended June 30, 1999 and
1998, respectively. Future renewal, re-lease and equipment sale activities will
cause a decline in the Trust's primary-term lease revenues and corresponding
sources of operating cash. Overall, expenses associated with rental activities,
such as management fees, and net cash flow from operating activities also will
decline as the Trust experiences a higher frequency of remarketing events.

     The Trust's equipment is leased by a number of creditworthy,
investment-grade companies and, to date, the Trust has not experienced any
material collection problems and has not considered it necessary to provide an
allowance for doubtful accounts. Notwithstanding a positive collection history,
there is no assurance that all future contracted rents will be collected or that
the credit quality of the Trust's lessees will be maintained. Collection risk
could increase in the future, particularly as the Trust remarkets its equipment
and enters re-lease agreements with different lessees. The Managing Trustee will
continue to evaluate and monitor the Trust's experience in



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                             AFG Investment Trust D

                                    FORM 10-Q

                          PART I. FINANCIAL INFORMATION

collecting accounts receivable to determine whether a future allowance for
doubtful accounts may become appropriate.

     Cash expended for asset acquisitions and cash realized from asset disposal
transactions are reported under investing activities on the accompanying
Statement of Cash Flows. During the six months ended June 30, 1999, the Trust
expended $3,064,700 to acquire its investment in Kettle Valley. In connection
with the investment, the Trust was paid $1,488,403 for a residual interest in an
aircraft in which the Trust owns an interest (see Note 4 for discussion of this
transaction). Also during the six months ended June 30, 1999, the Trust expended
$1,818,000 to acquire its investment in Kirkwood (see Note 5 for discussion of
this transaction). The Trust expended $87,748 to acquire equipment during the
six months ended June 30, 1998 and, during the six months ended June 30, 1999,
the Trust realized net cash proceeds from asset disposals of $1,177,246 compared
to $75,440 for the same period in 1998. Future inflows of cash from asset
disposal transactions will vary in timing and amount and will be influenced by
many factors including, but not limited to, the frequency and timing of lease
expirations, the type of equipment being sold, its condition and age, and future
market conditions.

     The Trust obtained long-term financing in connection with certain equipment
leases. The origination of such indebtedness and the subsequent repayments of
principal are reported as components of financing activities. Generally, each
note payable is recourse only to the specific equipment financed and to the
minimum rental payments contracted to be received during the debt amortization
period (which period generally coincides with the lease rental term). As rental
payments are collected, a portion or all of the rental payment is used to repay
the associated indebtedness. During 1999, the Trust leveraged $1,300,672 of its
investment in Kettle Valley that will be amortized over 34 months (see Note 4).
In the near-term, the amount of cash used to repay debt obligations may increase
due to the financing of other newly acquired assets. Thereafter, the amount of
cash used to repay debt obligations will decline. In addition, the Trust has
balloon payment obligations of $19,980,682, $1,400,074 and $282,421 at the
expiration of the lease terms related to the SAS Aircraft, certain rail
equipment and the Reno Aircraft, respectively.

     At June 30, 1999, the Trust was due aggregate future minimum lease payments
of $19,157,819 from contractual lease agreements (see Note 3 to the financial
statements), a portion of which will be used to amortize the principal balance
of notes payable of $33,480,685 (see Note 8 to the financial statements).
Additional cash inflows will be realized from future remarketing activities,
such as lease renewals and equipment sales, the timing and extent of which
cannot be predicted with certainty. This is because the timing and extent of
equipment sales is often dependent upon the needs and interests of the existing
lessees. Some lessees may choose to renew their lease contracts, while others
may elect to return the equipment. In the latter instances, the equipment could
be re-leased to another lessee or sold to a third party. Accordingly, as the
Trust matures and a greater level of its equipment assets become available for
remarketing, the cash flows of the Trust will become less predictable. In
addition, the Trust will have cash needs to satisfy interest on indebtedness and
to pay management fees and operating expenses. Ultimately, the Trust is expected
to meet its future disbursement obligations and to distribute any excess of cash
inflows over cash outflows to the Participants in accordance with the Trust
Agreement. However, several factors, including month-to-month lease extensions,
lessee defaults, equipment casualty events, and early lease terminations could
alter the Trust's anticipated cash flows as described herein and in the
accompanying financial statements and result in fluctuations to the Trust's
periodic cash distribution payments.

     It is the intention of the Managing Trustee to maintain a cash distribution
level that is consistent with the operating cash flows of the Trust and to
optimize the long-term value of the Trust. A distribution level that is higher
than the Trust's operating cash flows could compromise the Trust's working
capital position, as well as its ability to refurbish or upgrade equipment in
response to lessee requirements or other market circumstances. Class A
distributions have been maintained at an annualized rate of $1.64 per Class A
Interest since October 1996. Class B distributions were set at an annualized
distribution rate of $0.66 per Class B Interest commencing July 18, 1997 and
decreased to an annualized distribution rate of $0.44 per Class B Interest in
August 1998 following the Class B Capital Distribution paid at that time. Future
distributions with respect to Class B Interests will be subordinate to certain
distributions with respect to Class A Interests.

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                             AFG Investment Trust D

                                    FORM 10-Q

                          PART I. FINANCIAL INFORMATION



     Cash distributions to the Managing Trustee, the Special Beneficiary and the
Beneficiaries are declared and generally paid within 45 days following the end
of each calendar month. The payment of such distributions is presented as a
component of financing activities. For the six months ended June 30, 1999, the
Trust declared total cash distributions of $3,995,517, including the special
distribution described below. Of the total distributions, the Beneficiaries were
allocated $3,763,561 ($3,072,451 to Class A Beneficiaries and $691,110 to Class
B Beneficiaries); the Special Beneficiary was allocated $206,880, and the
Managing Trustee was allocated $25,076.

     In July 1999, the Trust distributed $1,572,405, including legal fees of
$84,520 paid to Plaintiffs' counsel, as a special cash distribution in
connection with the settlement of the Class Action Lawsuit described in Note 9
to the financial statements.

     Cash distributions paid to the Participants consist of both a return of and
a return on capital. Cash distributions do not represent and are not indicative
of yield on investment. Actual yield on investment cannot be determined with any
certainty until conclusion of the Trust and will be dependent upon the
collection of all future contracted rents, the generation of renewal and/or
re-lease rents, and the residual value realized for each asset at its disposal
date. Future market conditions, technological changes, the ability of EFG to
manage and remarket the assets, and many other events and circumstances, could
enhance or detract from individual asset yields and the collective performance
of the Trust's equipment portfolio.

     In the future, the nature of the Trust's operations and principal cash
flows gradually will shift from rental receipts to equipment sale proceeds as
the Trust matures and change as a result of potential new investments not
consisting of equipment acquisitions. As this occurs, the Trust's cash flows
resulting from equipment investments may become more volatile in that certain of
the Trust's equipment leases will be renewed and certain of its assets will be
sold. In some cases, the Trust may be required to expend funds to refurbish or
otherwise improve the equipment being remarketed in order to make it more
desirable to a potential lessee or purchaser. The Trust's Advisor, EFG, and the
Managing Trustee will attempt to monitor and manage these events in order to
maximize the residual value of the Trust's equipment and will consider these
factors, in addition to new investment activities and the collection of
contractual rents, the retirement of scheduled indebtedness, and the Trust's
future working capital requirements, in establishing future cash distribution
rates.

     During the past year, the Managing Trustee has evaluated and pursued a
number of potential new investments, several of which the Managing Trustee
concluded had market returns that it believed were less than adequate given the
potential risks. Most transactions have involved the equipment leasing, business
finance and real estate development industries. Although the Managing Trustee
intends to continue to evaluate additional new investments, it is considering
returning a portion of the Trust's capital to the Trust Beneficiaries in the
event that suitable reinvestment transactions are not identified.

     In accordance with the Trust Agreement, upon the dissolution of the Trust,
the Managing Trustee will be required to contribute to the Trust an amount equal
to any negative balance which may exist in the Managing Trustee's tax capital
account. At December 31, 1998, the Managing Trustee had a negative tax capital
account balance of $303,603.





                                       16
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                             AFG Investment Trust D

                                    FORM 10-Q

                           PART II. OTHER INFORMATION




        Item 1.      Legal Proceedings
                     Response:

                     Refer to Note 9 to the financial statements herein.

        Item 2.      Changes in Securities
                     Response:  None

        Item 3.      Defaults upon Senior Securities
                     Response:  None

        Item 4.      Submission of Matters to a Vote of Security Holders
                     Response:  None

        Item 5.      Other Information
                     Response:  None

        Item 6(a).   Exhibits
                     Response:  None

        Item 6(b).   Reports on Form 8-K
                     Response:  None




                                       17
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                                 SIGNATURE PAGE


     Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below on behalf of the registrant and in the capacity and
on the date indicated.


                                 AFG Investment Trust D


               By:      AFG ASIT Corporation, a Massachusetts
                        corporation and the Managing Trustee of
                        the Registrant.


               By:      /s/ Michael J. Butterfield
                        ----------------------------------------------
                        Michael J. Butterfield
                        Treasurer AFG ASIT Corporation
                        (Duly Authorized Officer and
                        Principal Accounting Officer)


               Date:    August 6, 1999
                        ----------------------------------------------


               By:      /s/  Gary M. Romano
                        ----------------------------------------------
                        Gary M. Romano
                        Clerk of AFG ASIT Corporation
                        (Duly Authorized Officer and
                        Principal Financial Officer)


               Date:    August 6, 1999
                        ----------------------------------------------



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